Table (Baristas Labor I). Suppose that the wage rate for baristas is $9 per hour and the average price of cappuccino is $4.45. Suppose the productivity of workers increases by 10% compared to the output shown in the table. The profit-maximizing quantity of labor would now be ____.
A) 2
B) 3
C) 4
D) 5

Question

Table (Baristas Labor I). Suppose that the wage rate for baristas is $9 per hour and the average price of cappuccino is $4.45.  Suppose the productivity of workers increases by 10% compared to the output shown in the table. The profit-maximizing quantity of labor would now be ____.
A) 2 
B) 3 
C) 4 
D) 5

Quizplus · Accepted Answer

The Answer is D